1. McGraw-Hill
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2. Management and Its Evolution
Chapter 1
Management and Its Evolution
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3. Learning Objectives After reading this chapter, you should be able to:
Understand the roles played by individuals, teams, and managers in carrying out company activities.
Practice the four major functions of management
Recognize the interpersonal, informational, and decisional roles played by top level managers.
Apply the general skills needed to carry out managerial responsibilities.
Integrate the major elements from the various perspectives of management theory.
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4. The performance of organizations depends to a large extent on how their resources are allocated and their ability to adapt to changing conditions.
Successful organizations know how to manage people and resources efficiently to accomplish organizational goals and to keep those goals in tune with changes in the external environment.
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5. Management in the New Millennium
A firm can be efficient by making the best use of people, money, physical plant, and technology.
It is ineffective if its goals do not provide a sustained competitive advantage.
A firm with excellent goals would fail if it hired the wrong people, lost key contributors, relied on outdated technology, and made poor investment decisions.
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6. Levels of management Strategic Managers Tactical Managers
Operational Managers
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7. Strategic Managers
The firm’s senior executives with overall responsibility for the firm.
Developing the company’s goals
Focus on long-term issues
Emphasize the growth and overall effectiveness of the organization
Concerned primarily with the interaction between the organization and its external environment.
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8. Tactical Managers
Responsible for translating the general goals and plans developed by strategic managers into specific objectives and activities.
Shorter time horizon
Coordination of resources
These are middle managers
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9. Operational Managers
Lower-level managers who supervise the operations of the organization.
Directly involved with non-management employees
Implementing the specific plans developed with tactical managers.
This is a critical role to the organization.
Operational managers are the link between management and non-management staff
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10. Management Functions Planning Organizing Leading Controlling
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11. Planning
The management function that assesses the management environment to set future objectives and map out activities necessary to achieve those objectives.
To be effective, the objectives of individuals, teams, and management should be coordinated to support the firm’s mission.
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12. Organizing
The management function that determines how the firm’s human, financial, physical, informational, and technical resources are arranged and coordinated to perform tasks to achieve desired goals.
The deployment of resources to achieve strategic goals.
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13. Leading
The management function that energizes people to contribute their best individually and in cooperation with other people.
This involves:
Clearly communicating organizational goals
Inspiring and motivating employees
Providing an example for others to follow
Guiding others
Creating conditions that encourage management of diversity
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14. Controlling
The management function that measures performance, compares it to objectives, implements necessary changes, and monitors progress.
Many of these issues involve feedback or identifying potential problems and taking corrective action.
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15. Management as a set of roles
Day-to-day management activities are routine, orderly, and rational.
These include:
Interpersonal roles - communication with superiors, peers, subordinates, and people from outside the organization.
Information Roles - obtaining, interpreting, and giving out information.
Decisional Roles - choosing among competing alternatives.
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16. Management as a set of skills
The four basic management functions require a set of skills to be carried out properly.
Because most managerial tasks are unique, ambiguous, and situation-specific, there is seldom one best way to approach them.
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17. Management as a set of skills
Four major categories of skills will help you become a good manager:
Strategic Skills - the ability to see “the big picture”, focus on key objectives without getting mired in details, and having a sense what is happening inside and outside the company.
Task-Related Skills - the ability to define the best approach to accomplish personal and organizational objectives. They include consideration of all resources, including time, organizational structure, financial resources, and people. They also involve the ability to prioritize, remain flexible to make necessary changes, and ensure that value is being created
Top executives are usually responsible for making major strategic decisions affecting the entire organization.
However, successful firms instill a strategic mentality and develop the strategic skills of individuals and teams at different levels.
The interaction between the inputs provided by individuals and teams and the organization-wide perspective of senior executives greatly enhances the success of major strategic decisions.
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18. Management as a set of skills
People-Related Skills - getting work done through others and with others. Include the ability to delegate tasks, share information, resolve conflicts, be a team player, and work with people from very different backgrounds
Self-Awareness Skills - Being aware of your personal characteristics can help you adapt to others and can help you understand why you react to them the way you do. These skills can help you to avoid rushed judgments, appreciate the nuances of particular situations, size up opportunities, capitalize on your personal strengths, and avoid situations in which you are likely to fail.
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19. Skills for Managerial Success
Strategic Skills
Environmental assessment scanning
Strategy formulation
Mapping strategic intent and defining mission
Strategy implementation
Human resource congruency
Task Skills
Setting and prioritizing objectives
Developing plan of action and implementation
Responding in a flexible manner
Creating value
Working through the organizational structure
Allocating human resources
Managing time efficiently
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20. Skills for Managerial Success (continued)
People Skills
Delegating
Influencing
Motivating
Handling conflict
Win-win negotiating
Networking
Communicating
Verbal
Nonverbal
Listening
Cross-cultural management
Heterogeneous teamwork
Self-Awareness Skills
Personal adaptability
Understanding personal biases
Internal locus of control
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21. The Evolution of Management Thought
Early Management Thought
Classical Perspective
Contemporary Management Perspectives
Behavioral Perspective
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22. Early Management Thought
Early ideas about management strategy
Sun Tzu, The Art of War
Early ideas about leadership
Nicolò Machiavelli, The Prince
Early ideas about the design and organization of work
Adam Smith, The Wealth of Nations
division of labor
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23. The Operational Perspective
Scientific Management
Frederick W. Taylor
Quantitative Management
Ford W. Harris
Quality Management
Walter A. Shewhart
Bureaucratic Management
Max Weber
Administrative Management
Henri Fayol
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24. Taylor’s Four Principles of Scientific Management
Scientifically study each part of a task and develop the best method of performing the task.
Carefully select workers and train them to perform the task by using the scientifically developed method.
Cooperate fully with workers to ensure that they use the proper method.
Divide work and responsibility so that management is responsible for planning work methods using scientific principles and workers are responsible for executing the work accordingly.
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25. Key Characteristics of Weber’s Ideal Bureaucracy
Specialization of labor
Formal rules and procedures
Impersonality
Well-defined hierarchy
Career advancement based on merit
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26. Fayol’s 14 Principles of Management
Division of work
Authority
Discipline
Unity of command
Unity of direction
Subordination of individual interest to the general interest
Remuneration
Centralization
Scalar chain
Order
Equity
Stability and tenure
Initiative
Esprit de corps
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27. Behavioral Perspective
The behavioral perspective acknowledges that psychological and social processes of human behavior can result in improvements in productivity and work satisfaction.
The Hawthorne effect - when a manager shows concern for employees, their motivation and productivity levels are likely to improve.
Human Relations Approach - the relationship between employees and a supervisor is a vital aspect of management.
Employee motivation
Leadership style
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28. Hawthorne Effect
The discovery that paying special attention to employees motivates them to put greater effort into their jobs.
(from the Hawthorne management studies, performed from 1924 – 1932 at Western Electric Company’s plant near Chicago)
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29. Maslow’s Hierarchy of Needs Need for Social Relations
Self-Actualization
Need for Self Esteem
Need for Social Relations
Need for Security
Physical Needs
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30. McGregor’s Theory X and Theory Y
Leaders and managers who hold Theory X assumptions believe that employees are inherently lazy and lack ambition.
A negative perspective on human behavior.
Leaders and managers who hold Theory Y assumptions believe that most employees do not dislike work and want to make useful contributions to the organization.
A positive perspective on human behavior.
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31. Contemporary Management Perspectives
Systems Theory
Contingency Theory
The Learning Organization Perspective
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32. Systems Theory
Views the organization as a system of interrelated parts that function in a holistic way to achieve a common purpose.
Systems theory concepts that affect management thinking:
Open and closed systems
Subsystems
Synergy
Equifinality
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33. Contingency Theory
States that there is no “one best way” to manage an organization.
Because what works for one organization may not work for another
Situational characteristics (contingencies) differ
Managers need to understand the key contingencies that determine the most effective management practices in a given situation
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34. The Learning Organization
The management approach based on an organization anticipating change faster than its counterparts to have an advantage in the market over its competitors.
There are two ways organizations can learn:
Experimental learning
External learning
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